Context:
Recently, the World Bank has increased its lending capacity by 50% through balance sheet optimisation
World Bank:
- Comprises 189 member countries, governed by a Board of Governors, typically finance or development ministers.
- Annual Meetings – The Board meets annually to set policy and oversee global development efforts.
- Mission and Functions –
- To reduce poverty and promote shared prosperity.
- Offers financial products, technical assistance, and policy advice to tackle complex development challenges.
- Works with multilateral institutions, civil society, private sector, and foundations to maximize impact.
- Notable Projects in India – Includes the India Energy Efficiency Scale-up Program, SANKALP, Raising and Accelerating MSME Performance (RAMP), Eastern Dedicated Freight Corridor, and Mumbai Urban Transport Projects.
WB Group (Global partnership of five institutions):
- IBRD (The International Bank for Reconstruction and Development) – It provides loans, credits and grants.
- IDA (The International Development Association) – It provides low or no-interest loans to low-income countries.
- IBRD and IDA form the World Bank
- International Finance Corporation (IFC) – It provides investment, advice and asset management to private companies and governments.
- Multilateral Guarantee Agency (MIGA) – It insures lenders and investors against political risk such as war.
- International Centre for the Settlement of Investment Disputes (ICSID) – It settles investment-disputes between investors and countries.
- India is not a part of ICSID
Source: World Bank Group
Previous Year Question
Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?
[UPSC Civil Services Exam – 2016 Prelims]
(a) Rouble
(b) Rand
(c) Indian Rupee
(d) Renminbi
Answer: (d)